St Kilda Football Club has today reported a net operating profit of $202,671 before grant-funding revenue, depreciation, amortisation and interest.
St Kilda CEO Matt Finnis said the modest operating profit reflected growth in several key areas, but also weaker than forecast match-return revenue.
READ: 2018 Annual Report
“The club recorded an operating profit with a new stadium deal in place, record membership, and growth in our commercial business,” Finnis said.
“However, due to a substantial decrease in home-game attendances following our poor on-field performance, we were unable to fully capitalise on the forecast gains in match-return revenue under the new stadium agreement.
“One of our major objectives over the past four years has been to build a more resilient business model in order to cope with the fluctuations in on-field performance.
“Whilst it is somewhat pleasing this stability protected the club in a disappointing season, the modest operating profit demonstrates the increasing importance of match-return revenue to our overall business.”
Finnis said revenue growth was driven by increases in membership, sponsorship and new business engagement programs.
“Our membership reached a club record of 46,998 this year, and this contribution from St Kilda supporters played a significant role in our ability achieve an operating profit,” he said.
“The support of our major partners Lion Dairy & Drinks, Pepper Money and RSEA Safety (the latter two extending their partnerships in 2018) was also important, as was the addition of more associate sponsors.
“The fielding of our first ever women’s team in the VFL Women’s competition was not only history-making from a football perspective, but it also helped the club secure a five-year partnership with Australian Paper (Reflex).
“The growth in revenue allowed the club to increase football department expenditure by close to $2m across men’s and women’s programs, in line with our stated objective to invest more heavily in this area.
“2018 also saw the Saints return to our spiritual home in Moorabbin, with the club and the St Kilda Football Club Foundation contributing a combined $4.7m towards the redevelopment of RSEA Park in this financial year to provide a brand new physical platform to pursue sustained success.
“St Kilda’s annual variable distribution from the AFL decreased by $0.5m in 2018, and the club also reduced its AFL trade payable balance by $0.6m in line with our AFL debt reduction plan.”
The club’s overall accounting net profit was $10,124,972 (2016: $5,267,414). Included within the net profit is Moorabbin Reserve grant funding revenue of $13,149,766, depreciation and amortisation expenses of $2,937,477.
St Kilda’s AGM will be held on Tuesday 18 December at RSEA Park starting at 7 pm
